The Relationship between Customers' Choice of Retail Format and Their Profiles: the Case of Luxury Fragrance and Beauty Market

Over the past decade retail has undergone certain changes, a new tendency for the development of direct distribution channels has emerged, targeted at risks diversification, reduction of dependence on intermediaries, as well as image improvement and brand perception. Luxury f&b (fragrance & beauty) market sets the pattern. Own f&b boutiques in major shopping centers in Moscow are opened by such brands as Armani, CHANEL, Bobby Brown, Jo Malone London and others. The main issue arising when a new retail format is introduced to the market is who is the target audience of the boutique and what factors can be used to attract the audience. Neither the typology of consumers nor the factors of choice of retail format are considered as new concept notions in marketing, but at the current moment there are no academic studies revealing the correlations. The given work exemplifies the relationship between customers' choice of retail format and their profiles in the market of luxury fragrance and beauty. In the framework of this study, the types of consumers were anticipated, the factors of their choice of the place of purchase were defined, and a relationship between two independent sets - customers of f&b boutiques and chain stores was found. The study revealed the core differences between them, explaining the reasons why some customers choose chain stores, while others prefer single-brand boutiques. Based on the results of the study we have elaborated recommendations according to anticipated types of consumers.